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Ardagh Glass Finance plc - Irish Stock Exchange

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We are subject to various environmental and other legal requirements and may be subject to new<br />

requirements of this kind in the future that could impose substantial costs upon us.<br />

Our operations and properties in Germany, the United Kingdom, Sweden, Denmark, The<br />

Netherlands, Poland and Italy are subject to extensive international, EU, national, provincial, regional<br />

and local laws, ordinances, regulations and other legal requirements relating to environmental<br />

protection. Such laws and regulations which may affect our business include requirements regarding<br />

remediation of contaminated soil, groundwater and buildings, water supply and use, water discharges,<br />

air emissions, waste management, noise pollution, asbestos and other deleterious materials, generation,<br />

storage, handling and transportation of hazardous materials, product safety and workplace health and<br />

safety.<br />

The scope of such laws and regulations varies across the different jurisdictions in which we<br />

operate. Our operations and properties in Germany, the United Kingdom, the Nordic region, the<br />

Benelux region, Poland and Italy must comply with the legal requirements in each jurisdiction, as well<br />

as EU and international legal requirements. These requirements may have a material adverse effect on<br />

our business, financial condition and results of operations.<br />

We have incurred, and expect to continue to incur, costs for our operations to comply with such<br />

legal requirements, and these costs could increase in the future. Environmental laws and regulations<br />

that affect our business have become and are becoming increasingly stringent. We require a variety of<br />

permits to conduct our operations, including operating permits such as those required under the EU<br />

Directive on Integrated Pollution Prevention and Control, water and trade effluent discharge permits,<br />

water abstraction permits, and waste permits. We are in the process of applying for, or renewing,<br />

permits at a number of our sites. Failure to obtain the relevant permits, as well as non-compliance,<br />

could have a material adverse effect on our business, financial condition and results of operations. If<br />

we were to violate or fail to comply with these laws and regulations or our permits, we could be subject<br />

to criminal, civil and administrative sanctions and liabilities, including substantial fines and orders.<br />

Sites at which we operate often have a long history of industrial activities and may be, or have<br />

been in the past, engaged in activities involving the use of materials and processes that could give rise<br />

to contamination and result in potential liability to remediate, as well as claims for alleged damage to<br />

persons or property. Liability may be imposed on us as owners, occupiers or operators of contaminated<br />

facilities. These legal requirements may apply to contamination at sites that we presently own, occupy<br />

or operate, or that we formerly owned, occupied or operated, or were formerly, owned, occupied or<br />

operated by companies which we acquired. Regarding companies acquired by us, we cannot assure you<br />

that our due diligence investigations identified or accurately quantified all material environmental<br />

matters related to the acquired facilities. Furthermore, the closure of a site may accelerate the need to<br />

investigate and remediate any contamination at the site.<br />

Soil and groundwater contamination has been identified at a number of our sites and other sites<br />

have been identified as sites which have potential for contamination. At certain sites, remediation work<br />

has already been, or is currently being, undertaken, in consultation with regulatory authorities where<br />

necessary. Should our operations cause environmental damage in the future or currently unknown<br />

conditions be discovered, we may be required to undertake additional remedial measures. The costs<br />

associated with remediation works can be substantial and could have a material adverse effect on our<br />

business, financial condition and results of operations.<br />

Asbestos is present, or may be present, at a number of our sites. It is possible that remediation<br />

measures will be required. Remediation costs can be significant and could have a material adverse<br />

effect on our business, financial condition and results of operations.<br />

Our business is energy intensive, which results in the emission of products of combustion and the<br />

high temperature oxidation of atmospheric nitrogen; i.e., sulphur dioxide, carbon dioxide and oxides of<br />

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